GARYVILLE, LA (AP) — Marathon Petroleum Corp. has abandoned plans for a multibillion-dollar upgrade to its Garyville refinery.
The residual oil upgrade expansion was estimated at $2.2 billion to $2.5 billion. The project would have allowed the refinery to convert heavy residual oil, a refinery byproduct, into roughly 1.2 million gallons of ultra-low sulfur diesel every day.
Marathon announced the project in April 2014, saying the final decision on whether to go forward would be made in early 2015.
But in February, Marathon announced it would delay the final investment decision to evaluate the implications of market conditions.
The Advocate’s Ted Griggs reports President and Chief Executive Officer Gary Heminger said in a statement Marathon will put its cash into projects that offer a better return.
